Home furnishings retailer Z Gallerie achieves recapitalization

Home furnishings retailer Z Gallerie achieves recapitalization

Oct 28, 2009

Z Gallerie, a privately-held retailer of home furnishings and decorative accessories, has emerged from Chapter 11 and completed its recapitalization in less than six months. The company also reached an agreement with Wells Fargo Business Credit on a $22 million exit financing package.
“The reorganization allowed us to achieve a recapitalization of our balance sheet that results in a stronger financial foundation," said Mike Zeiden, Chief Financial Officer and co-founder. “Our family eye to the business and to our customers is one of the reasons for our past success, and we are thrilled to have retained it for the future.”
The company’s reorganization plans were approved by all of the company’s vendors. “Our vendors have been extremely supportive,” stated Carole Malfatti, Vice President and co-founder.
Zeiden said that sales are meeting projections, and the company is looking forward to the upcoming holiday season. “While Z Gallerie has always provided unique and quality merchandise at affordable prices, we are also mindful of our customer’s budget in today’s economic environment. Customer response to our current pricing model has been positive,” he said.
The company has retained all of its principal merchandising and customer programs, including its private label credit card. Z Gallerie also continues to enhance its website and social networking capabilities. These efforts, along with in-store merchandising, will better assist customers with their home decorating decisions.